Mahanagar Gas Faces Mixed Financial Trends Amidst Strong Sales Growth and Profit Decline

Mahanagar Gas has recently undergone a financial trend adjustment, reflecting a flat performance for the quarter ending September 2025. The company's net sales for the first nine months reached Rs 6,097.79 crore, showcasing a growth rate of 20.40%. This positive sales performance is complemented by a notable dividend per share of Rs 30.00, indicating a commitment to returning value to shareholders.
However, several challenges persist for Mahanagar Gas. The profit after tax for the quarter has declined to Rs 191.37 crore, marking a significant drop of 33.3%. Additionally, the debtors turnover ratio stands at a low of 1.79 times, suggesting potential issues with receivables management. The operating profit to net sales ratio is also concerning, recorded at just 16.48%, while the profit before tax less other income is at its lowest, amounting to Rs 226.89 crore. The earnings per share for the quarter is similarly low at Rs 19.37.

In terms of market performance, Mahanagar Gas has shown mixed results compared to the Sensex. Over the past week, the stock returned 2.79%, outperforming the Sensex's 1.43%. However, on a year-to-date basis, the stock has underperformed with a return of -2.6% compared to the Sensex's 8.02%. Over a three-year and five-year period, Mahanagar Gas has outperformed the Sensex, with returns of 42.13% and 44.91%, respectively.